Baltimore Real Estate Investing Blog

Watch how calmly this guy negotiates a 1.5 million dollar home. Boy is he smooth.

Keep laughing,

Ned

Do you have an Apple iPod? How do you use it? I try to take a walk every day. It is modest exercise and it relaxes me. I also get some of my best ideas while walking. To help generate those ideas I listen to my iPod.  I listen to motivation, sales, real estate and marketing recordings.

Many of us have a shelf full of programs from all kinds of real estate Gurus. Why not load them onto your iPod and actually listen instead of leaving them on your shelf.  I have also recorded my goals so that I can listen to them daily. You can take this a step further and record a list of your strengths and successes. Motivational speakers regularly talk of our “Self Talk” and how it can help or hinder us depending on whether it is positive or negative. Record a positive self talk tape  and listen daily. This guarantees you a daily dose of positive messages.

What is Nike +

I Use a Nike+ for my iPod.  This is a really cool tool.  It has a little transmitter that goes in your shoe and it sends a signal to a receiver attached to your iPod.  It keeps track of how far and how fast you run.  When you sync your iPod it uploads your info to a Nike website which tracks your mileage.  You can set goals and track by day, week, or month.

While I am out walking, the Nike+ is keeping track of how far, while the iPod give me something positive and motivating  to listen to.

Kudos to Nike for Good Service

Well I had to replace my sensor as the battery had run out. I hooked it all up and it wouldn’t sync properly with the website. I checked the online FAQ – useless.  So I sent a message to customer service.  Most big companies like Nike have bad customer service. They want to rely on their horrible online instructions and FAQs.  Much to my surprise I quickly I got a reply back with an answer that actually worked.  It was a personalized message from someone who actually understood the question! I was very impressed and I think Nike deserves Kudos for providing such good service.

Try it Yourself

If you want to get an iPod or the Nike plus I’ve made it easy for you. Just click the links below. The Nike+ does not work with all iPods. So if you already have an iPod make sure you have the right one before you spend the money for the Nike+ kit. You need to get a Nano (1G, 2G, 3G or 4G) or an iPod Touch 1 G or 2G. To make it easy for you these links will send you to the right page.

Apple iPod nano 8 GB (4th Generation)
Apple iPod touch 8 GB (2nd Generation)
Apple Nike + iPod Sport Kit for iPod

This book by Dave Lindahl is about repositioning Apartment buildings. This is truly one of the better books on real estate investing that I have read. While its primary focus in multi-family buildings, it has tremendous value for single family home investors also. Dave Lindahl got his start renovating single family properties and doing small 3 unit multi-family properties.

What is Repositioning

For those unfamiliar with the commercial property business a repositioning would be the equivalent of rehabbing a single family home. Rehabbing a single family home is usually done on a vacant property.  When the property is complete it is sold to a homeowner or landlord. Repositioning is generally a more complex process. It can often be done with tenants in place. Usually some renovation is required but it is more than just renovation It is often also about upgrading the tenants, management and the Position of the property in the marketplace. (By the way one of the best books on Marketing is called Positioning: The Battle for Your Mind Repositioning apartment buildings is in part applying it’s concepts)

Multi-Family Millions is Full of Tips

This book is full of tips. My copy is full of yellow highlighted pages. Many of these tips apply to rental properties of any size. One example would be his suggestion to offer tenants to paint an accent wall for an extra $20 a month. Or how about this tip

Replace faucets. Do not be cheap here! Inexpensive faucets are a maintenance headache, and end up costing you more overall. Get ones that are distinctive and elegant. Here’s my rule: If the tenant has to touch it regularly, make it special.

The book has advice on finding deals, working with contractors, smart renovation tips, financing your deals, negotiating and much more.

Who is Dave Lindahl

Dave invests in apartment buildings around the country. He started small. His first rental was a  3 unit building in a depressed  area. He now has over 5,000 units, so he know what he is talking about.

Who Should Buy this Book

Anyone who wants to invest in apartment buildings would find this to be a wonderful book. Yet there is value to single family home landlords, and rehabbers. As I said above this is one of the better books I have read on real estate investing. In addition to really solid information it is well written, easy to read and easy to understand. Just as importantly it is not full of irrelevant fluff like so many investing books. I recommend this book highly. You can buy it from Amazon at a great price here. Multi-Family Millions: How Anyone Can Reposition Apartments for Big Profits

Happy reading,

Ned

How do I invest in this volatile market?

Are you wondering how to invest in this changing market? Have you seen your savings and investments decline? Are you paralyzed and unsure what to do with your investments even as you see them wither away to nothing? Crab Properties, LLC has arranged a free online webinar to answer these concerns.

Arkad Group, LLC will present why Commercial real estate, specifically apartment buildings, is the best investment for this market.

I know what you are thinking “I don’t have the kind of money it takes to buy an apartment building.” This is why the second part of the online webinar is about using your IRA. This little know technique allows you to use your IRA to invest in high return investments like commercial real estate.

Invest in real estate with your IRA!

Did you know you can invest in real estate with your IRA?  After their home, retirement accounts represent the largest investment for most Americans. This is an untapped source of funds to invest in real estate that most never even realized was possible.

Satchie Carvounis, a representative for Security Trust Company, will give a presentation on how to super charge your retirement accounts by investing in creative strategies like real estate.

Don’t settle for stock market losses or measly 2% returns bank CDs or treasury bills. Sign up now.

Sign up for our list to get announcements of future events

Commercial property and IRA webinar

Details
When – Wednesday March 25
Time – 8:00-9:00 pm eastern savings time
Where – Online, watch and listen in from home
Price – Zero, nada, nothing, just sign up.
Click Here to sign up

Do you want to learn how to invest in tax sales?  Do you want to learn the best neighborhoods to invest in Baltimore City? Which neighborhoods are the good the bad and the ugly? Do you want personal mentoring and all you investing questions answered?   If so contact us.

Crab Properties, LLC is looking for  interns to help with the 2009 Baltimore City Tax Sale.  If you would like to learn about the tax sale business from an experienced investor go to the Contact Us link above.

Candidates must have transportation and will be expected to travel to Baltimore to inspect properties for the upcoming tax sale. This often works best in pairs so don’t be shy about applying with a friend.

I am a big fan of Warren Buffett.  In fact I wrote about some of Warren Buffett’s quotes earlier. While reading another blog about investing, Invesmint.com, I saw the following video about Warren Buffet buying stocks.

A key quote from the video is:

Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long term asset, one that pays virtually nothing and is certain to depreciate in value.

Yes if you are smart you have cash on the sidelines. However if you are really smart you have no intention of keeping it there. You should be shopping for value. Whether that value is in the stock market like Mr. Buffett or in real estate.

Another famous quote of Warren’s is also in the video:

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful

Many have cash on the sidelines because they are fearful. However this is the time to get aggressive with your finances. This is the time to “Be Greedy” and take advantage of the low prices.  Of course “Being greedy” does not mean being stupid. You need to know how to find value, and how to assess it.  If you don’t know how to do that you need to get an education and/or work with a professional you can trust.

Contact me and I will help

As a reader of this blog, contact me and I’ll be glad to help and point you in the right direction. No one, not even Warren Buffett, can predict prices short run, but real estate is currently priced very well for long run. If you have money on the sidelines and want to get into real estate, send me a message via the contact us page and I’ll give you some ideas as  to how to go about it.

Happy investing,

Ned

The Real Deal Investment club will be meeting this Tuesday March 17

Date
Tuesday March 17
(Held every third Tuesday of the month)

Time
6:00 – 9:00 PM

Location
The Meeting House
5885 Robert Oliver Place
Columbia, MD 21045

Click here for Directions an Map

This is a new club I mentioned in this recent post about two new investment clubs. Tammy Phelps the organiser tells me she has a great speaker lined up. I really enjoyed their first meeting. It was a smaller more intimate club without all the rah rah sales pitches you often get at investment clubs. I hope to see you there.

Mark your calendars for Wednesday March 25.  We will be having a webinar at 8:00 pm.  Arkad Group, LLC  will offer a presentation on investing in apartment buildings and a special guest will give a presentation on an unexpected source of funds to do that investing.

DMV REIA Grand Opening in College Park, MD March 7

This is quoted from their flyer.

Network with fellow Real Estate Buyers and Investors near you! Come to a DMV REIA meeting to discuss properties on the market, contracts, mortgages and anything else about land and realty. We have training on the latest investment techniques. If you are not serious about making a lot of money with real estate investing this in not the group for you.

Whether you invest in Maryland, Virginia, or District of Columbia Real Estate, you are welcome to come and network with other investors who have learned how to survive and invest in the DC Metropolitan Area.

March 7th 2009 Agenda

Blanket drive for Homeless Youth

– Please bring a new or gently used blanket to donate to the covenant House

Free Seminar

– Protecting your assets and Creative Financing in Real Estate Investing

The meeting will be held at knights of Columbus, 9450 Cherry Hill Rd. College Park, MD 20744. The start time will be 9:30 am Saturday March 7.

More information and to RSVP go to http://www.meetup.com/DMVREIA/

The Real Deal Investment Club in Columbia Md

The Real Deal Investment Club had their first meeting February 17. About 20 people showed up which is pretty respectable for a first meeting.  Being so small it was great for networking. This is my number one reason for going to investor meeting, so I loved it. The organizer Tammy Phelps also got great feedback.

The Real Deal Investment Club meets the third Tuesday of the Month at the Meeting House 5885 Robert Oliver Place in Columbia MD 21045 at 6:00-9:00 pm

I like this guy already. What great marketing! Do you think he gets noticed and remembered?

Brilliant marketing, however he only did half the job.

I love this, but he could have done even better. While I might remember the image,  I am not likely to remember the name and certainly not the number. A quick search of the internet found a number of copies of this photo. But without a city state or area code how would I find this guy? By the way he’s from Halifax, Nova Scotia.

A Google check of the name finds a number of directory type business sites that list him but no web page for this guy. He could be on the first page of Google if he had a website. This is a wonderful opportunity for vital marketing and cross marketing. Think how many people would link to him to see the picture. Links to a website are a big part of what drives a website to the top of Google searches. (Since he doesn’t have a site to link to, you could link here. I’d sure appreciate it)

How can you learn from this? Can you create something similar and memorable in your business?

Would you do business with this guy? Would  you think of him 1st first when you need a plumber? Or do you think of him as a goofball and would avoid him. Leave a comment and let me know.

Keep Laughing,

Ned

Fannie Mae will now allow up to 10 mortgages per investor.

Effective March 1, 2009 Fannie Mae will increase the number of mortgages allowed per investor to ten. This is up from the current limit of four. This new guideline applies to one to four unit properties. Fannie Mae cites the importance of investors in the following quote.

Experienced investors play a key role in the housing recovery and Fannie Mae’s continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation’s housing system.

Fannie Mae  writes “Lenders are encouraged to implement these changes immediately.”  Since Fannie Mae does not actually offer any mortgages, they buy mortgages in the secondary market, your lender may have stricter guidelines.

You can read the actual announcement here. It will open as a PDF document. It’s worthwhile reading as it lists eligibility, and reserve requirements.

Happy investing,

Ned

! ! ! Update: see 2011 Tax Sale Announced ! ! !

The Baltimore City has announced that the date of their annual sale of tax lien certificates is scheduled for Monday May 18, 2009.

Other important dates for tax sale bidders.

Wednesday, March 11, 2009. Properties that are delinquent will be listed in the Baltimore Sun along with instructions for bidders. Bidder registration begins. If you missed the paper the tax lien list is available at BidBaltimore.com

Approximately March 25, 2009, a second printing of properties scheduled for the sale will be printed in a publication to be announced.

Monday May 11, 2009, is the last day to register to bid.

Friday May 15 will be the final update of properties going into the sale and bid submission begins.

Monday May 18, is the day of the auction for Baltimore City Tax lien Certificates. Bidding will be done online at BidBaltimore.com

Homeowners Last Day to Pay Taxes

The last day to pay your overdue taxes by personal check was February 2. The deadline for walk in payments or Online payments is May 1, 2009. This is the last day to have your property removed from the tax sale. After this date you will have to wait until Thursday May 28 2009. This is the first day you can redeem a property that has been in the 2009.

Good luck, but don’t bid too high!

Ned

More articles on tax liens here

Homes Database, a New MLS for Home Buyers

Homes Database opening page

A new tool is available for consumers looking for a home. HomesDatabase.com is a new website to search listings in the greater Baltimore / Washington DC area. Consumers have previously had access to listings, via places like Zillow, HomeGain.com, MLS.com etc., however Homes Database is run by and gets it’s information from the same local MLS service that agents use.

Homes Database Is Easy to Use

In the opening page that you see above, you simple enter some basic information. What comes up is the window below. The map shows where the listings are. You can click one of the little houses and a brief description comes up. If you want more detail click again and a more detailed listing pops up. Alternatively all the homes on the map are listed one the left side with the brief description and a picture.

Now here is the really cool part, you can use the cursor (it show up as a hand like in adobe acrobat) and move the map around and everything automatically recalculates. All the listings down the left adjust for the new view of the map. You can rescale the map and the same thing happens.

Yes some other sites do the same things but it seems to just work better on Homes Database.  It really is an easy to use website.

Results Window

Other Features of HomesDatabase.com

There is no need to register but if you do you get access to a few other features.

• You can save favorites, so properties you are interested in are easy to find when you come back.
• You can make notes about your favorite properties.
• You an get turn by turn directions, making a day of house hunting easy.
• Email alerts, as new properties come on the market you can have them emailed right to your computer.

What Is in it For Investors

The best features are the ability to quickly screen by price and zoom around on the map. I was able to quickly find some REO properties that could be decent buys. You get a full description of the property and sometimes multiple pictures.  You an also easily see properties for rent to get an idea of the rental market.

While each detailed listing does have comparable properties. It says “provided by CyberHomes.”  This is clearly from the public records and does not have the detailed info you need to use as comparables. It does not list the number of bedrooms for example.  However it is just about as good as you are going to get from any free site.

Overall I like it, mainly because it is easy to use. It is a heck of a lot easier than the pay MLS service that I use.  Let me know what you think of it by leaving a comment. Let others know about it by clicking The “Share This” button below and sending it to your favorite social media site.

Happy house hunting,

Ned

About the only time I might read People Magazine is when I am waiting in the doctors office and there is nothing else around about business and finance. However while waiting for the cable guy at my girlfriends new house, I noticed Michael J Fox on the cover of the most recent issue of People. It was 10 years ago that he was on the same cover because he had just announced that he had Parkinson’s disease.

The story inside is an update on how he is doing.   It is absolutely inspiring. Despite a disease that makes everyday life a struggle, Michael shows an incredibly positive attitude. While the cocktail of several medicines allows him to function, he still has daily periods were he can’t move is arms.   Yet his life is better, fuller, richer simply because of his attitude.

There is a wonderful quote in the article where he says “Hope is optimism with the facts to back it up  .   .   .  I’m in the Hope Business.” I think that is a great way to describe a positive attitude. Hope, optimism, positive attitude or whatever you want to call it, is not about pretending there are no problems. It is about recognizing both problems and strengths and making the best of them.

In my last post about Thanksgiving and a positive attitude, you can read about how being thankful helps you recognize your strengths.  But it is just as important to recognize the roadblocks in life. Only by acknowledging them can you address them. That is where the positive attitude comes in, fixing the problems. Pretending the problems aren’t there is not a positive attitude and in fact will lead to very negative consequences. A positive attitude is recognizing the roadblocks and saying “I can make this better!”

We all have problems, The weakest of us are overwhelmed by them. Most of us muddle through. The best of us see them as an opportunity. That is the level Michael j Fox is operating at. If you want to be inspired pickup a copy of the Dec. 8, 2008 People magazine.

Happy investing,

Ned

I have plenty to be thankful for but I don’t believe today should be about giving thanks. That’s not good enough. Thanksgiving should be the annual reminder to be thankful every day.

Giving Thanks is Part of a Positive Attitude

Much is said about having a positive attitude. It is true; people with positive attitudes tend to be more successful than those that don’t. Being thankful is part of a positive attitude.

Many people are attracted to real estate as a way to build wealth. Many of them question if they have what it takes to succeed. They think “I don’t have enough money, I don’t have good credit, I’m not a good negotiator, I am not good with numbers. . . Etc.” These people are being negative. They are focusing on what they don’t have.

Being thankful is focusing on what you do have. That’s a positive attitude. If you are reading this you can be thankful you have the financial resources to afford a computer. You say “No, Ned, I am using a computer at a library.” So you can be thankful you have access to a free computer. Since you have access to a computer, you have access to virtually all of the accumulated knowledge of the world. That is certainly something to be thankful for.

Find New Resources and Strengths

You probably never thought about being thankful for something as simple as a computer. However can you see how having access to the entire accumulated knowledge of mankind will help you succeed? Can you see how being thankful will help you discover resources you didn’t realize you have?

The above is one small example. Imagine the abundance of riches in your life that can come from just apprecaiting what you already have.

A Good Habit

One very good habit I had, was to listen to a recording of my goals, things to be thankful for, my strengths and successes. This daily positive reminder is tremendously powerful over time. Today is a prompt to get back into that habit.

In the hustle bustle of everyday life it’s easy to forget the blessings we have. Please don’t use today as the one day to be thankful for them. Use today as a reminder to be thankful for them all year.

Happy Thanksgiving, and be thankful you’re not a turkey,

Ned